Employee Motivation in Project Management

EMPLOYEE MOTIVATION IN PROJECT MANAGEMENT
Approved: Date: 7 May 2009

Paper Advisor
Motivation in Project Management ii
EMPLOYEE MOTIVATION IN PROJECT MANAGEMENT
__________________
A Seminar Research Paper
Presented to
the Graduate Faculty
University of Wisconsin-Platteville
__________________
In Partial Fulfillment of the
Requirement for the Degree
Master of Science
in
Project Management
__________________
by
FangMin Yang
2009
ABSTRACT
The purpose of this paper was to discuss motivation theory and explore the
application of motivation theory in project management. There are numerous
differences between project management and traditional management, but, when it
comes to motivating employees, the same motivation theories that are used in
traditional management can be used to motivate employees working on projects.
Nowadays, motivation theory has become a central tenet of management theory, such
that the effective use of motivation theory has a significant impact on the dedication
and performance of employees and, as a result, the overall success of a company.
This seminar paper presents a summary of some of the most popular
motivation theories, and a review of their application to management of employees, in
general, and to project management teams, specifically. Each motivation theory has
advantages and disadvantages. The motivation theories discussed in this paper are
Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor Theory of Motivation, and
McGregor’s Theory X and Theory Y. When these theories are applied in organizations,
managers must take into account the situation and make the decision of which
motivation theory will work best given the situation.
My research findings suggest that there is a difference between motivating
employees in project management and traditional management. In addition, this paper
describes how to motivate mangers and leaders, and provides several constructive
proposals for building a motivated project team.
iii
TABLE OF CONTENTS
ABSTRACT ................................................................................................................. iii

INTRODUCTION ......................................................................................................... 1
Statement of Problem ................................................................................................. 1
Purpose of the Research ............................................................................................. 2
Significance of the Problem ....................................................................................... 2
Assumptions ............................................................................................................... 2
Delimitation of the Research ...................................................................................... 2
Method of Approach .................................................................................................. 3
Definition of Terms .................................................................................................... 3
LITERATURE REVIEW .............................................................................................. 4
History of Motivation Theories .................................................................................. 4
Introduction to Maslow’s Hierarchy of Needs ....................................................... 4
Application of Maslow’s Hierarchy of Needs ........................................................ 7
Introduction of Herzberg’s Two-Factor Theory of Motivation .............................. 8
Application of Herzberg’s Two-Factor Theory of Motivation ............................. 10
McGregor’s Theory X and Theory Y ................................................................... 11
Application of Motivation Theories in Project Management................................... 13
Motivation in Project Teams ................................................................................ 14
SUMMARY ................................................................................................................. 18
Conclusions .............................................................................................................. 18
Limitations ............................................................................................................... 20
Recommendations for Future Research ................................................................... 21
REFERENCES ............................................................................................................ 24
iv
TABLE OF FIGURES
Figure 1. Maslow’s Hierarchy of Needs ........................................................................ 5
Figure 2. Factors that led to extreme satisfaction according to Herzberg ..................... 9
Figure 3. Factors that led to extreme dissatisfaction according to Herzberg ................. 9
v
INTRODUCTION
Competition between organizations is becoming more and more fierce, it
requires organizations to operate efficiently in the present while innovate effectively
for the future. Managers and leaders within these organizations not only focus on the
market success and profitability of each project, but also augment their continued
global competitiveness. Therefore, managers and leaders do need to motivate their
employees in order to be profitable and successful.
“Motivation is the driving force within individuals that compels them
physiologically and psychologically to pursue one or more goals to fulfill their needs
or expectations,” (Lam and Tang, 2003, p. 61). There is general understanding of
employee motivation, but it has not been thoroughly investigated in the project
management setting. So this paper will introduce some popular motivation theories
and investigate their application to project management by reviewing existing
literature.
Statement of Problem
The problem presented in this paper was to identify how motivation theory is
applied in project management. Project management has differences from traditional
management, but employees working on projects also can be motivated if managers
properly use these motivation theories. Yet, there is a lack of consensus of in project
management as to how to properly motivate project managers and team members.

Motivation in Project Management 2
Purpose of the Research
As there has been little research aimed at understanding motivation in project
management, the purpose of this research paper is to introduce some popular
motivation theories and their applications in business in general, and specifically in
project management. Another purpose of this paper is to outline what is known about
motivating employees in project management and to identify gaps in research into
motivation of project management personnel.
Significance of the Problem
As project management is becoming a more and more popular in organizations,
research investigating how to motivate project management employees is of great
importance to organizations and project managers. Research has shown that motivated
employees are more productive than unmotivated workers, which can improve an
organizations competitive position.
Assumptions
For the purpose of this paper, it was assumed that all research and reviews of
the current literature were accurately reported. Also, it was assumed that the literature
made recommendations on how best to use the research presented therein.
Delimitation of the Research
The research was conducted in and through the Karrmann Library at the
University of Wisconsin-Platteville, over a period of thirty (30) days. Primary
searches were conducted through the Internet using the ABI/Informs Global database
and the EBSCO host databases with Academic Source Elite, Business Source Elite,
and Academic Search Complete as the primary sources. Key search topics included
“motivation theory”, “motivating employees”, “motivation theory in project
management”, and “motivating project management employees”.
Method of Approach
A brief review of literature on the studies of Maslow’s Hierarchy of Needs,
Herzberg’s Two-Factor Theory, McGregor’s Theory X and Theory Y motivation
theories was conducted. A second review of literature focused on application of these
theories was conducted. The findings were summarized and recommendations made.
Definition of Terms
Motivation：“Motivation is the driving force within individuals that compels them
physiologically and psychologically to pursue one or more goals to fulfill their needs
or expectations,” (Lam and Tang, 2003, p. 61).
Project: A project is a finite endeavor (having specific start and completion dates)
undertaken to create a unique product or service which brings about beneficial change
or added value. This finite characteristic of projects stands in contrast to processes, or
operations, which are permanent or semi-permanent functional work to repetitively
produce the same product or service (Dinsmore et al., 2005).
Project management: Project management is the discipline of planning, organizing
and managing resources to bring about the successful completion of specific project
goals and objectives (Cleland & Gareis, 2006).

LITERATURE REVIEW
History of Motivation Theories
Motivation is one of the most popular topics in organizational behavior
(Stephen, 2005). Nowadays, managers are trying to find useful theories to motivate
their employees. While there are a wide variety of theories on human motivation,
these theories do not conflict, which means that managers can use any or all those
motivation theories to motivate their employees. Managers can use these motivation
theories in ways that complement each other. A brief history of motivation theory is
presented in order to outline the current understanding of employee motivation.
Introduction to Maslow’s Hierarchy of Needs
In 1943, psychologist Abraham Maslow published a paper titled, A Theory of
Human Motivation, and later Maslow expanded on his theory of human motivation in
a 1943 book, Toward a Psychology of Being. In the 1943 article, Maslow formulated
a need-based framework of human motivation, which was based upon his clinical
experiences with human patients.
According to Maslow’s motivation theory, the answer to the question, “why
people are motivated?” is that they are motivated by a variety of needs (Maslow,
1971). Maslow (1943) grouped all human needs into five “need” categories that can
then be arranged in levels by importance. Thus, Maslow’s Hierarchy of Needs is
arranged from the lowest level to the highest level as follows: physiological needs,
safety needs, social needs, esteem needs, and self-transcendence (Fig. 1).
Figure 1. Maslow’s Hierarchy of Needs
Physiological needs: Physiological needs are the lowest level of needs, which
are the most basic needs for people. Physiological needs are also considered the
requirements for human survival. If these requirements are not met, people cannot
continue to function. Physiological needs include: breathing, homeostasis, water,
sleep, food, excretion, and sex.
Safety needs: When people’s physical needs have satisfied, they will pursue
higher level needs, such as safety needs. Safety needs are driven by the need for
security and protection from physical and emotion harm. Safety needs include:
personal security, financial security, health and well-being, and a safety net or
insurance for accidents/illness and the adverse impacts.
Social needs: Social needs are the third level of human needs, and include
one’s needs for affection and a sense of belonging and acceptance. Humans need to
feel a sense of belonging and acceptance. They need to love and be loved.
Esteem (Ego) needs: All humans have a need to be respected, to have
self-esteem, self-respect, and to respect. Esteem presents the normal human desire to
be accepted and valued by others. These include one’s internal needs for self-respect,
autonomy, and achievement, as well as one’s external needs for status and
recognition.
Self-actualization: Self-actualization is at the top of Maslow's motivation
hierarchy, and focuses on the pursuit of attaining one's full potential as a person.
Unlike lower level needs, this need is never fully satisfied; as one grows
psychologically there are always new opportunities to continue to grow.
Self-actualized people tend to have motivators such as, truth, justice, wisdom, and
meaning. Self-actualized persons have frequent occurrences of peak experiences,
which are energized moments of profound happiness and harmony (Maslow, 1943).
According to Maslow (1971), only a small percentage of the population reaches the
level of self-actualization.
Maslow's theory of motivation rests on two fundamental propositions: (1)
human beings are motivated by unsatisfied needs; (2) as a particular need becomes
satisfied, it becomes less of a motivator, while the next level of need becomes a
greater motivator (Gray and Stark, 1984). For example, once people satisfy their
physiological needs, they can pursue safety needs. For most people, the lower level
needs will be more satisfied than the higher level needs. In addition, differences in
satisfaction levels are likely to occur across cultures and individuals (Gray and Stark,
1984). For example, in less developed countries, lower-level needs are often poorly
satisfied, whereas in North America, the lower-level needs are usually satisfied for
most of the people.
Application of Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of Needs is one of the most famous motivation theories,
and it has been the focus of much interest by management researchers (Katz, 2004).
The reason for its popularity is that Maslow’s Hierarchy of Needs has intuitional logic
and easy to understand factors. Motivation theories, especially those with intuitional
logic and easy to understand factors, are popular in management. But, a general
condemnation of Maslow’s theory is that his Hierarchy of Needs lacks verification by
research in actual organizations (Gray and Stark, 1984). Critics believe that Maslow
did not provide any proof for his theory in terms of data gathered in organizations,
and some researchers, who follow Maslow, are disappointed with the lack of rational
arguments for aspects of Maslow’s theory (Hall and Nougaim, 1972).
In general, Maslow is seen as a pioneer in understanding human motivation,
but his theory has shortcomings (Grayu and Stark, 1984). Maslow was the first person
to recognize that human needs can be categorized into groups and these groups can be
prioritized, and this was a valuable insight into human motivation theory. Maslow’s
theory was highly disparaged by other motivation theorists for three reasons (Gary
and Stark, 1984). First, Maslow believed that once a need is fulfilled, it is not a
motivating factor, which has been proven to be false. Second, Maslow believed that
people worked on satisfying needs at one level at a time, while others have
demonstrated that humans can work on satisfying needs at more than one level at a
time. Third, Maslow believed that once all the needs at one level are met, the person
moves onto the next level and never comes back to the lower-level. Despite these
criticisms, Maslow’s theory of human motivation provides a basic understanding of
the kinds of needs that humans have, and provides insights into how managers can
motivate employees (Gray and Stark, 1984).
Introduction of Herzberg’s Two-Factor Theory of Motivation
Psychologist Frederick Herzberg and colleagues (1959) proposed his
Two-Factor Theory of Human Motivation, which is also named Motivation-Hygiene
Theory. Herzberg believed that there exist a basic relationship between individuals
and their jobs, whether assignments can be done is depending by individuals’ attitudes
about their jobs (Herzberg, Mausner, and Snyderman, 1959). Herzberg’s Two-Factor
Theory is based on the results of research into the factors in a workplace that lead to
employee satisfaction.
Herzberg made use of a survey, titled, “What do people want from their jobs?”
to gain insights into what workplace factors people perceived as satisfying and
dissatisfying. He asked people to describe in detail which workplace factors led to
satisfaction and which factors led to dissatisfaction, and then he separated the results
and classified them. Figures 2 and 3 show the factors that led to extreme satisfaction
and dissatisfaction, respectively (Herzberg, 2003).

Figure 2. Factors that led to extreme satisfaction according to Herzberg (2003).
Figure 3. Factors that led to extreme dissatisfaction according to Herzberg (2003).
Herzberg found that people have a completely different set of factors that
satisfy them in comparison to the factors that dissatisfy them (Gray and Stark, 1984).
There is an obvious connection, some factors always focused on job satisfaction,
while other factors always focused on job dissatisfaction. Some internal factors, like
achievement, recognition, advancement, and growth, are connected with job
satisfactions. At the same time, some external factors, like company policy and
administration, supervision, work condition, and salary, are connected with job
dissatisfactions.
Herzberg called the factors that led to employee satisfaction motivation factors,
and factors that led to dissatisfaction, he called hygiene factors (Gray and Stark, 1984).
Hygiene factors must be present in order to prevent an employee from being
dissatisfied. Herzberg pointed out that, in terms of human motivation theory, the
opposite of satisfaction is not dissatisfaction, and eliminating factors that lead to
dissatisfaction in the workplace cannot ensure that workers are satisfied (Gray and
Stark, 1984). That means factors that lead to job satisfaction are completely
independent from factors that lead to job dissatisfaction.
Herzberg concluded that eliminating the dissatisfaction factors from the
workplace does not guarantee employees’ satisfaction, but can produce peaceful work
circumstances; therefore, eliminating or minimizing these factors that lead to
dissatisfaction will simply pacify workers, but will not motivate them (Robbins, 2005).
In addition, Herberg’s theory indicates than if managers want to satisfy their
employees, the managers need to incorporate motivation factors in the workplace.
Application of Herzberg’s Two-Factor Theory of Motivation
Many researchers and managers did agree with Herzberg’s Two-Factor Theory,
but there still is some criticism (Robbins, 2005). The first criticism is that the research
design used by Herzberg was lacking in rigor, in terms of ensuring participants
responded honestly to the survey questions (Robbins, 2005). Because most people
will attribute success to their own efforts, but blame failure on others, the participants
may have inadvertently been dishonest in their responses.
A second criticism is that Herzberg’s research method was qualitative and, as a
result, the questions were open-ended (Robbins, 2005). This allowed participants to
answer the questions in ways that were uniquely their own. Because different people
can use different ways to answer the same question, this can make it difficult to
accurately interpret the results of a qualitative survey.
A third criticism is that Herzberg did not evaluate the overall satisfaction of
the employee (Robbins, 2005). Because one person may like one part of the job and
not another part of the job does not mean that the employee is satisfied (or dissatisfied)
with the job as a whole. All that can be concluded is that some aspects of the job are
satisfying and other aspects of the job are dissatisfying.
Lastly, Herzberg’s theory is criticized for ignoring the fact that circumstances
change, such that what satisfies an employee one day may not satisfy the same
employee the next day, much less another generation of workers (Robbins, 2005).
Although these criticisms of Herzberg’s Two-Factor Theory exist, it is still popular in
management practice.
McGregor’s Theory X and Theory Y
According to McGregor’s 1960 Theory, there are two extreme opposite kind
of people: basically one is positive, and the other is negative. McGregor named these
two states of humanness as Theory Y and Theory X. Through the observation of the
way the manager treats the staff, McGregor concluded that: the manager's ideas about
human nature are established on a set of assumptions (Gray and Stark, 1984). The
manager tends to use these assumptions to form the behavior model to treat
subordinates.
In Theory X, managers have the following four assumptions (Gray and Stark,
1984). First, employees do not like to work and want to evade work as much as
possible. Second, because employees do not want to take responsibility for the work,
managers should take some actions, like compelling and supervising strategies, to
help them finishing their task. Third, have no motivation to achieve organizational
goals. Forth, the majority of employees are motivated by the lower-levels of needs,
the physiological and safety needs.
In Theory Y, managers have a completely opposite set of assumptions (Gray
and Stark, 1984). First, employees treat work as entertainment and rest, it is natural.
Second, if employees promise to undertake an assignment, they will be committed to
finish it. Third, generally people will take responsibility. Forth, employees have the
ability to make creative decisions, not just managers.
McGregor (1960) believed Theory Y is more useful than Theory X, because
Theory X assumed that human actions are dictated by low-level needs, and at the
sometime Theory Y assumed that human actions are determined by high-level needs.
So McGregor suggested that managers let employees participate in the

decision-making process, provide challenging and rewarding jobs for employees, and
establish harmonious group relations (McGregor, 1960). Unfortunately, there is a lack
of research proving which theory is better and which theory can motivate employees
more efficiently (Gray and Stark, 1984).
Application of Motivation Theories in Project Management
As Peterson cited in Scholtes: “How does the project manager create an
environment conducive to outstanding team synergy and peak individual
performance?” (Peterson, 2007, p60). The remainder of this paper provides the
answer to this question as well as a further exploration of motivational approaches a
project manager can apply to the project team environment.
In order to apply motivation theories in project management, managers need to
understand that there are differences between project team motivation and
organizational motivation. According to Schmid and Adams (2008) there are two
major differences between project team motivation and organizational motivation.
The first difference focuses on the project team leader and the duration of the
project. In a project, both the leader and the project are temporary. In other words,
project management consists of temporary jobs under the control of a temporary
leader. Both the project management and the overall organization can influence
employee motivation. Schmid & Adams (2004) stated that

The question resulting from this duality of forces onto the individual team
members is: Can a project manager influence team motivation positively
despite overall organizational influences? In other words, can a project
manager encourage high intrinsic team motivation even if the overall
organization creates a culture of low motivation? (p. 64).
The Project Management Institute states that the second difference which
makes project management different from general management is that project
management goes through various project stages, namely: initiating, planning,
executing, monitoring and control, and closing (Schmid & Adams, 2004). Thus,
project team development occurs during these five project stages, so different
approaches need to be used to motivate the project team depending upon the stage of
the project. In addition, the nature of the project has a close relationship with the
development of the project team itself. Tuckman (1965) found that there are four
stages (forming, storming, norming, and performing) that take place in small groups
assigned to complete a project or task. With this model of team building in mind,
Huszczo (2004) proposed that a project manager should realize that when we need to
motivate employees we have to consider different motivational approaches depending
upon the stage the team in it. Schmid & Adams (2004) further explained that the latest
research on project managers’ perceptions proposes that project managers need to
understand the different stages of group formation and how they may impact
motivation of project teams.
Motivation in Project Teams
Now that a clear distinction between project team motivation and
organizational motivation has been made, the next question addressed here is: how to
establish a motivated project team. According to Dunn (2001), project management is
most often used in matrix organizations. A matrix is a complicated organizational
structure, wherein individuals on a project team come from different functional parts
of the organization. In order to fulfill a common purpose, the project team establishes
a mutual understanding of the goal and works together to accomplish it. Even though
the project team is comprised of individuals from different functional areas of the
organization, they have to be motivated to work together to overcome differences and
accomplish the project’s goal.
There is no doubt that employees can be motivated in a project management
environment. Yet, according to a survey conducted by Schmid & Adams (2004), there
are four major projects constraints that can have a strong negative impact on team
motivation: scope changes, time changes, cost changes and quality changes. Schmid
& Adams’ (2004) research also showed that these four major project constraints are
closely related to each other and are directly tied to the project manager’s ability to
communicate effectively.
Even with a motivated project team, a successful project needs strong support
from upper management. Without strong support from upper management, personal
conflicts may easily arise due to project team members’ responsibilities (positions)
within the company (Schmid & Adams, 2004). These conflicts may arise when
project members feel more loyal to their regular responsibilities within the
organization than to the project. It is incumbent upon the project manager to resolve
these conflicts and maintain the team’s motivation at a high level.
In addition to describing the negative impacts on motivating the project team,
Schmid & Adams (2004) presented ideas that they believed will help to build a
motivated project team. Project managers expect employees to be productive and to

contribute to the project. However, they need to be motivated to be productive and
committed remaining productive. Schmid & Adams’ (2004) ideas for building a
motivated project team are summarized in the following three points.
1. The project manager needs to pay close attention to the different
varieties of people involved with the project (Schmid & Adams, 2004). Project
managers are exposed to a wide variety of personalities, different levels of expertise,
and ranges of positional seniority along with unique backgrounds, cultures, and
personal experiences of each team member. In addition, with today’s global business
environment, it is extremely common for a team to be virtual (Peterson, 2007);
therefore, it is even more important for the project manager to pay close attention to
the characteristics of the team members.
2. The project manager needs to understand the team members (Schmid &
Adams, 2004). One of the biggest challenges to a project manager is the ability to
understand team members’ wants and needs in order to motivate them. Lewis (2003)
pointed that a project manager needs to understand the individual desires of each team
member. To achieve a project environment where the majority of the members
involved are motivated about the project, project managers have to be sensitive to the
needs and wants of the team members. A better understanding of the employees’
wants and needs will improve the project manager’s ability to motivate a project team.
3. The project manager also needs to actively engage team members in the
project throughout the various project stages (Schmid & Adams, 2004), especially the
early stages. During early stages in the project, the project team’s motivation can be
strongly influenced by the project manager. Clear communication at the beginning of
project appears to be a key in the development of high motivation throughout the
whole project. At the beginning of a project, managers should communicate with the
project stakeholders, in order to gain the support from top management, establish
clear scope requirements with the client and sponsor, and involve team members, as
early as possible. Team members must be involved in the project from the kickoff
stage to develop a sense of belonging and owning. A project manager should strive to
instill a sense of project ownership in all stakeholders, and early involvement appears
to be the best way to accomplish that.
Thus, creating the proper environment for a project team is a key to motivating
the team members to perform at a high level. There is no single way to accomplish
this, but, as pointed out previously, there are several things that project managers and
organizations can do to increase the probability that the environment is helpful in
motivating employees.
So far, this paper had described three major motivation theories, discussed the
historical approaches organizations have taken to motivate employees, and looked at
what is currently known about motivating employees in traditional organizations
versus project teams. The rest of this paper will focus on the conclusions of this
research, implications of this research for project managers, limitations of this study
and recommendations for future research.

SUMMARY
This seminar paper presented a summary of some of the most popular
motivation theories, and a review of their application to management of employees, in
general, and to project management teams, specifically. The motivation theories
described in this paper are Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor
Theory of Motivation, and McGregor’s Theory X and Theory Y. The advantages and
disadvantages of each motivation theory were discussed. When these theories are
applied in organizations, managers must take into account the situation and make the
decision of which motivation theory will work best given the situation.
My research findings suggested that there is a difference between motivating
employees in project management and traditional management. In addition, this paper
described how to motivate mangers and leaders, and provided several constructive
proposals for building a motivated project team.
Conclusions
In today’s economy, human resources are becoming a significant contributor
to the competitive advantage experienced by successful organizations. The effective
use of human recourse has become one of the most important issues for organizations
in the 21st century. Fortunately, organizations have abundant motivational theories to
help them understand people’s wants and needs in order to motivate them.
Although an outstanding method for motivate people doesn’t exist, it is
understood that people can be motivated if proper incentive mechanisms are used. It is
also understood that the highly motivated people and project teams have a higher
chance of successfully accomplishing goals. When goals are successfully
accomplished, organizations tend to thrive and be profitable. Therefore, organizations
with highly motivated employees have a competitive advantage over those that do
not.
Project managers must understand current motivation theories and know how
to use them properly. Project managers must also focus on effective communication
with project members, especially early in the project, in order to avoid the pitfalls that
lower motivation in project teams. In addition, the project managers must know what
kind of an environment is more effective in motivating project members, and be able
to foster such an environment.
According to the theories previously described, this researcher believes that
the most effective way to motivate leaders and project managers is to use equities
incentive mechanisms and stock option plans. Equities incentive mechanisms and
stock option plans are when top managers obtain a certain portion of the long-term
stakes in the company. This ties the top managers’ performance to the company’s
long-term success. And as a result, the managers become shareholders. Thus, equities
incentive mechanisms and stock option plans are a mechanism for focusing top
managers’ efforts on the company's long-term success (Sesi, Kruse, & Blasi, 2001).
Equity incentive plans are a very common practice for international companies
(Zhang, 2001). The general point of view is that equity incentive plans can help
professional managers, the interests of shareholders, and the company's long-term
development come together. These plans can also prevent a certain degree of
short-term business risk (Zhang, 2001).
Modern business theory and practice has proved that equity-based incentives
are useful for improving corporate structure, reducing agency costs, enhancing
management efficiency, and enhancing the company’s cohesion and competitiveness
(Zhang, 2001). In project management, equities incentive mechanisms can also be
used to motivate top managers. For example, if the project is successful and creates
value for the organization, the project manager can get a reward from the organization
for his or her efforts on the project.
Limitations
One limitation of this study is that it was conducted as a literature review, and,
as a result, the study only addressed motivating American workers. Historically,
mostly American researchers have researched motivation theory, and, therefore,
theories regarding the motivation of non-American workers are almost non-existent.
In this paper, the researcher ignored cultural difference due to limited motivation
research focused on other cultures and this paper was written with the assumption that
there are no culture differences and the conclusions drawn can be applied in any
culture.
Another limitation is that there has been limited research conducted to
specifically identify how to motivate project team members. Therefore, this paper was
restricted to reviewing information about motivation theory in organizations in
general and a small number of studies directed at understanding motivation in project
management.
Recommendations for Future Research
With regard to the need for further research，three points should be considered:
(1) what motivates human behavior, (2) what directs such behavior, and (3) how this
behavior is maintained or sustained. Each of these three questions represents an
important component in our understanding of human behavior in practice. These three
components of motivation appear again and again in the theories and research (Steers
& Porter, 1975).
First, this conceptualization points to a motivational force within individuals
that “drives” them to behave in certain ways. That is to say, a person’s behavior has a
close relationship with certain motivational methods.
Second, there is the notion of goal orientation on the part of individual; their
behaviors are directed toward something. So, it is important to set up a project goal
for employees that lead their efforts to attain the goal.
Third, this way of viewing motivation contains a systems orientation; that is, it
considers those forces in the individuals and in their surrounding environments that
feed back into the individuals either to reinforce the intensity of their drive and the
direction of their energy or to dissuade them from their course of action and redirect
their efforts (Steers & Porter, 1975). Therefore, to make a motivation policy, the
company should have a broad view of the issue.
A specific recommendation for future research is to investigate which
motivation theory is the best for use in project management. Therefore, project
management researchers should attempt to identify the best motivational techniques

for project managers and team members. In addition, project management researchers
need to examine which motivation techniques work best depend on different
organizational cultures, team members’ professional backgrounds, and also the
different positions of employees in the company. Lastly, project management
researchers need to explore the factors that have successfully motivated project
management teams.
Another specific recommendation is that project management researchers
study the use of equities incentive mechanisms and stock option plans. As mentioned
previously in this paper, this researcher is a strong believer in the use of equities
incentive mechanisms and stock option plans to motivate top leaders and managers.
Research investigating the relationship between the motivation of project managers
and the use of equities incentive mechanisms and stock option plans may provide
organizations with a mechanism for motivating project managers.
Also, it is recommended that researchers look more closely at the relationship
between highly-motivated project teams and project success. There has been a great
deal of research on project success factors, but little has been done to understand the
extent of the influence of a motivated project team on the success of the project.
Lastly, research on motivating employees and project teams should be
conducted in countries other than America, so that cultural differences in employee
behavior can be better understood. For example, what motivates American employees
may not motivate Chinese employees. Therefore, an understanding of motivation in
other cultures can be valuable for international organizations, by allowing an

organization to apply the most appropriate motivational techniques to workers from
different cultures. In addition, project managers working with international project
teams can benefit from knowing how to motivate people from different cultural
backgrounds.
REFERENCES
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Employee Motivation in Project Management

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EMPLOYEE MOTIVATION IN PROJECT MANAGEMENT

Approved: Date: 7 May 2009

EMPLOYEE MOTIVATION IN PROJECT MANAGEMENT

A Seminar Research Paper

the Graduate Faculty

In Partial Fulfillment of the

Requirement for the Degree

application of motivation theory in project management. There are numerous

differences between project management and traditional management, but, when it

traditional management can be used to motivate employees working on projects.

and performance of employees and, as a result, the overall success of a company.

This seminar paper presents a summary of some of the most popular

motivation theories, and a review of their application to management of employees, in

Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor Theory of Motivation, and

motivation theory will work best given the situation.

My research findings suggest that there is a difference between motivating

employees in project management and traditional management. In addition, this paper

proposals for building a motivated project team.

ABSTRACT ................................................................................................................. iii

Figure 1. Maslow’s Hierarchy of Needs ........................................................................ 5

Figure 2. Factors that led to extreme satisfaction according to Herzberg ..................... 9

Figure 3. Factors that led to extreme dissatisfaction according to Herzberg ................. 9

Competition between organizations is becoming more and more fierce, it

requires organizations to operate efficiently in the present while innovate effectively

global competitiveness. Therefore, managers and leaders do need to motivate their

employees in order to be profitable and successful.

“Motivation is the driving force within individuals that compels them

or expectations,” (Lam and Tang, 2003, p. 61). There is general understanding of

and investigate their application to project management by reviewing existing

applied in project management. Project management has differences from traditional

management, but employees working on projects also can be motivated if managers

management as to how to properly motivate project managers and team members.

Purpose of the Research

As there has been little research aimed at understanding motivation in project

management, the purpose of this research paper is to introduce some popular

motivation theories and their applications in business in general, and specifically in

motivating employees in project management and to identify gaps in research into

motivation of project management personnel.

Significance of the Problem

As project management is becoming a more and more popular in organizations,

research investigating how to motivate project management employees is of great

organizations competitive position.

made recommendations on how best to use the research presented therein.

Delimitation of the Research

University of Wisconsin-Platteville, over a period of thirty (30) days. Primary

“motivation theory”, “motivating employees”, “motivation theory in project

management”, and “motivating project management employees”.

A brief review of literature on the studies of Maslow’s Hierarchy of Needs,

Herzberg’s Two-Factor Theory, McGregor’s Theory X and Theory Y motivation

theories was conducted. A second review of literature focused on application of these

Motivation：“Motivation is the driving force within individuals that compels them

or expectations,” (Lam and Tang, 2003, p. 61).

or added value. This finite characteristic of projects stands in contrast to processes, or

operations, which are permanent or semi-permanent functional work to repetitively

produce the same product or service (Dinsmore et al., 2005).

Project management: Project management is the discipline of planning, organizing

goals and objectives (Cleland & Gareis, 2006).

History of Motivation Theories

Motivation is one of the most popular topics in organizational behavior

presented in order to outline the current understanding of employee motivation.

Introduction to Maslow’s Hierarchy of Needs

In 1943, psychologist Abraham Maslow published a paper titled, A Theory of

experiences with human patients.